PCN vs VYM
PIMCO Corporate & Income Strategy Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PCN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.04% | |
| AUM | $864M | $79.0B | |
| Dividend Yield | 11.74% | 2.86% | |
| Holdings | 526 | 568 | |
| YTD Return | -0.54% | +15.80% | |
| 1Y Return | +4.31% | +26.12% | |
| 3Y Return (annualized) | +4.41% | +18.25% | |
| 5Y Return (annualized) | +0.47% | +12.51% | |
| Volatility (annualized) | 21.7% | 14.6% | |
| Max Drawdown | -66.7% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 21, 2001 | Nov 10, 2006 |
PCN vs VYM Performance
PIMCO Corporate & Income Strategy Fund (PCN) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PCN returned +4.31% while VYM returned +26.12%. Year to date, PCN is down 0.54% versus a gain of 15.80% for VYM.
Over three years, PCN compounded at +4.41% per year against +18.25% for VYM; over five years the annualized figures are +0.47% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +1.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCN has been the more volatile fund, with annualized monthly volatility of 21.7% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -66.7% for PCN and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCN charges 0.88% per year while VYM charges 0.04%. On a $10,000 position that is $88 vs $4 annually, a gap of $84 per year that compounds over a long holding period. On income, PCN currently yields 11.74% against 2.86% for VYM.
Holdings Overlap
PCN and VYM share 0 holdings out of 581 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PCN or VYM?
PCN has an expense ratio of 0.88% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, PCN or VYM?
Over the past year PCN returned +4.31% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PCN annualized +1.28% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PCN or VYM?
PCN has been the more volatile fund at 21.7% annualized versus 14.6% for VYM. Worst drawdown: PCN -66.7% vs VYM -58.8%.
Should I hold both PCN and VYM?
PCN and VYM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCN and VYM?
PCN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 581 unique securities.
Which pays a higher dividend, PCN or VYM?
PCN yields 11.74% while VYM yields 2.86%, so PCN currently pays the higher dividend yield.
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